JP Morgan: $2500 Gold In 2011 [Archive] - Glock Talk

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humanguerrilla
08-09-2011, 15:11
http://www.cbc.ca/fp/story/2011/08/08/5223337.html

Would be interesting...

TangoFoxtrot
08-09-2011, 16:59
All well in good if you could have bought it low enough.

Lone Kimono
08-09-2011, 17:40
If things fall apart and my neighbor has gold and I have food storage...I'm the richer man. Buy food instead.

MikeinCincy
08-09-2011, 17:41
All well in good if you could have bought it low enough.

If it hit $2,500 by year end, that'd be a 42% holding period return. I'd say that's not too shabby for 4.5 months.

MikeinCincy
08-09-2011, 17:42
If things fall apart and my neighbor has gold and I have food storage...I'm the richer man. Buy food instead.

The two should not be mutually exclusive. Those who buy gold, for the most part, have the means to buy plenty of food too.

Lone Kimono
08-09-2011, 17:59
Oh, you are absolutely correct, but things are getting a bit out of hand. That $2500 will buy a lot of food storage. If I had to choose between buying one coin or 25+ cases of food I know where my money is going. There realistically could come a time when gold is worthless compared to food.

cowboy1964
08-09-2011, 18:36
When in the last 5000 years of human history has gold been even close to worthless. Never.

I bought Gold at $800. Now it's double that. So I can now buy double the food I could have before.

Hope you never have to bug out. Good luck hauling 3 tons of food.

Braken
08-09-2011, 22:02
When in the last 5000 years of human history has gold been even close to worthless. Never.

I bought Gold at $800. Now it's double that. So I can now buy double the food I could have before.

Hope you never have to bug out. Good luck hauling 3 tons of food.

I am not so sure you can buy double the food today with your gold. When did you buy at $800? Micky D's is $7 for a meal now. A can of soup is $1.88 @ Wally World.

Lone Kimono
08-09-2011, 22:54
When in the last 5000 years of human history has gold been even close to worthless. Never.

I bought Gold at $800. Now it's double that. So I can now buy double the food I could have before.

Hope you never have to bug out. Good luck hauling 3 tons of food.

I live in Utah, doubt there will be a better place to bug out to, but I'm prepared for that as well. To answer your question, if society totally breaks apart and people are starving to death, gold won't be worth anything compared to food and ammo. You can't eat gold and certainly can't protect your family with it.

It's good to diversify and I'm Glad you doubled your money. You were smart to buy in when you did, but I personally wouldn't buy in at $2500.

poodleshooter1
08-12-2011, 02:23
When in the last 5000 years of human history has gold been even close to worthless. Never.

I bought Gold at $800. Now it's double that. So I can now buy double the food I could have before.

Hope you never have to bug out. Good luck hauling 3 tons of food.

The value has not increased though, which is what some of your just seem to refuse to understand. It's just kept pace with inflation. The purchasing power of your gold is the same as it was when you bought it.:yawn:

poodleshooter1
08-12-2011, 02:23
I am not so sure you can buy double the food today with your gold. When did you buy at $800? Micky D's is $7 for a meal now. A can of soup is $1.88 @ Wally World.

Finally someone who get's it!!!:wavey:

TangoFoxtrot
08-12-2011, 02:56
If it hit $2,500 by year end, that'd be a 42% holding period return. I'd say that's not too shabby for 4.5 months.
Yes but there is still alot of "ifs" like any other risky investment. Bottom line is if the SHTF and there is a breakdown in society, gold will have the same value as a can of soup. Right now gold is aprox. $1700, tomarrow it could be worthless. It is what it is. I'll keep investing in food , ammo and water stores. You can't eat, drink and protect yourself with gold, unless you trade it in before the SHTF.

Lone Kimono
08-12-2011, 11:08
Yes but there is still alot of "ifs" like any other risky investment. Bottom line is if the SHTF and there is a breakdown in society, gold will have the same value as a can of soup. Right now gold is aprox. $1700, tomarrow it could be worthless. It is what it is. I'll keep investing in food , ammo and water stores. You can't eat, drink and protect yourself with gold, unless you trade it in before the SHTF.

That's exactly what I was saying. Gold's only value is in that which you can trade it for. If your family is starving and you have a $2500 dollar coin while I have a number 10 can of wheat...the value of wheat just hit $2500. Law of supply and demand.

SilverCity
08-12-2011, 13:39
Don't mean to go there, but as long as we are speculating...

If we have to resort to barter, the S has HTF, and we will have much more serious things to worry about...like staying alive.

I doubt folks will be very polite about bartering when they are desperate. I suspect if someone knows you have food and you are not willing to trade your surplus for something of reasonable value, they might kill you for it.

And yet, after you are fully prepped, what do you do with the rest of your money? Pay off your mortgage, only to watch your house get burned to the ground? I doubt insurance companies will be in business. Leave it in the bank? Brokerage or retirement account? It will most likely be gone or seriously devalued.

Gold and silver have relevance now and will have a place when/if society returns to some semblance of order.

SC

pugman
08-12-2011, 14:01
When in the last 5000 years of human history has gold been even close to worthless. Never.

I bought Gold at $800. Now it's double that. So I can now buy double the food I could have before.

Hope you never have to bug out. Good luck hauling 3 tons of food.

When it comes to gold...I would rather be the store than the person coming in with gold to sell.

humanguerrilla
08-23-2011, 02:52
broken $1900
http://www.reuters.com/article/2011/08/23/us-markets-precious-idUSTRE7781Q420110823

Big Bird
08-23-2011, 06:28
Jinx for sure. JP Morgan couldn't predict a good return in anything even if they had a time machine.... Personal experience speaking here...

cowboy1964
08-23-2011, 10:16
All well in good if you could have bought it low enough.

$1900 to $2500 in 5 months isn't a good enough profit for ya?

cowboy1964
08-23-2011, 10:19
That's exactly what I was saying. Gold's only value is in that which you can trade it for. If your family is starving and you have a $2500 dollar coin while I have a number 10 can of wheat...the value of wheat just hit $2500. Law of supply and demand.

Quit thinking in terms of dollars. Dollars will be worthless. Then the price of gold, silver, wheat, ammo, water, etc will be $infinity.

If a can of wheat is worth 1 oz of gold, so be it. 99% of the sheeple out there don't have any gold at all so I guess they will starve. The ones who were smart enough to be prepared, including making gold and silver part of their preps, won't.

wjv
08-23-2011, 10:58
Oh, you are absolutely correct, but things are getting a bit out of hand. That $2500 will buy a lot of food storage. If I had to choose between buying one coin or 25+ cases of food I know where my money is going. There realistically could come a time when gold is worthless compared to food.

Why are you assuming that he only can afford one coin?

Many people have a year+ worth of food, and far more than "one coin". .

wjv
08-23-2011, 11:09
That's exactly what I was saying. Gold's only value is in that which you can trade it for. If your family is starving and you have a $2500 dollar coin while I have a number 10 can of wheat...the value of wheat just hit $2500. Law of supply and demand.

You will not be setting the price for that can of wheat any more than you can currently set the price for a gallon of gas. The MARKET will set the price.

Once again. . Barring an asteroid hitting the planet, we are NOT going to have a mad max scenario. . . The government will not disappear. Society will not disappear. Commerce will not disappear. Things will change, but everyday life will NOT look that much different. Crime will increase. Neighborhoods will become more run-down. People will be hungry. There will be a lot more homeless. And the government will probably become more oppressive.

But you won't be riding through the wasteland battling cannibals while bartering your cans of wheat to starving masses.

wjv
08-23-2011, 11:17
When it comes to gold...I would rather be the store than the person coming in with gold to sell.

That's fine. . .

Do you have the 30 tons of food already put aside to stock your store? If not, how are you gong to acquire the stock for your store after the currency collapses?

Today the dollar is at 73.85 (down .26 just today). If it drops to 18.0, the dollars you have will only buy 1/4 of what it will buy today. But that 1 ounce of gold will very likely buy about the same, or even slightly more than what it can buy today. (based on FerFal's experiences in Argentina)

Another problem is that places like Safeway, Albertsons, Krogers and such WON'T be out of business. . So people really won't need to come to you for supplies. FerFal stated that after the crash in Argentina there was plenty of food in the stores. . . People just didn't have the money to buy the food. .

SilverCity
08-23-2011, 12:46
Jinx for sure. JP Morgan couldn't predict a good return in anything even if they had a time machine.... Personal experience speaking here...

JPMorgan (British Royal family is majority stockholder) is working on behalf of the U.S. Govt and is telegraphing that they will HIT IT HARD at $2500. They absolutely do not want higher metals prices. They are the ones holding huge naked short contracts on silver with the Chicago Mercantile Exchange.

SC

Lone Kimono
08-23-2011, 16:35
Quit thinking in terms of dollars. Dollars will be worthless. Then the price of gold, silver, wheat, ammo, water, etc will be $infinity.

If a can of wheat is worth 1 oz of gold, so be it. 99% of the sheeple out there don't have any gold at all so I guess they will starve. The ones who were smart enough to be prepared, including making gold and silver part of their preps, won't.

Cowboy, once again I never said don't have any precious metals. I believe very strongly in diversifying. What I said is we are getting past the point of where buying gold is worth it. If it hits $2500 and you want to invest that money in one coin (or multiple coins at that price) go for it. You have to do what you feel is best for your family. My feelings are that isn't the best decision.

Just to keep it on a smaller scale....If I could buy one gold coin for $2500 or well over another years supply of food it's a simple decision for me. It could also buy a significant amount of ammo. All of which would be a lot more liquid than a gold coin unless you carry a blow torch.

Again, small scale example, I understand in all practicality it would be multiple. I'm probably also not on the same level as you financially, so I have to think differently to prepare my family. If one is trying to protect very large sums of money maybe it makes more sense. Even millionaires with huge mansion could only fit so much food in them.

That being said I still feel the price of food will some day be worth more than precious metals. Not worthless, just worthless compared to food.

WJV, I wasn't assuming he had one coin (or could only afford one coin). It was an example that I'm sorry you didn't understand. If you feel the government will always be here, and things won't completely break down (even for short periods of time) I honestly wish you and your family the best. We just disagree. I'm not doom and gloom, but I feel there will come a time when things change significantly. If those times come to pass I'll be happier I spent money on food, guns, and ammo than I would have on overpriced coins. Again, personal choice.

If you have precious metals during that time in addition to food, guns, ammo, and other supplies great! You were smart to plan ahead and to diversify. There just comes a time when money to buy gold will go a lot farther in other places. I think we are reaching that point...I very well could be wrong.